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Parker-Hannifin (PH) Q2 Earnings Beat, Revenues Grow Y/Y

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Cleveland, Ohio-based Parker-Hannifin Corporation (PH - Free Report) is a prominent built-up components & equipment company, conducting trade in the global industrial goods sector. The company produces control and motion technologies as well as systems that are traded across different aerospace, industrial and mobile marketplaces located around the world.

Parker-Hannifin’s “Win Strategy”, its core business system focusing on key areas, including customer engagement, customer experience, profitable growth and financial performance, has acted as a staple growth driver for the past few quarters. Also, the company’s initial savings from division consolidation and simplification initiatives continue to manifest themselves in the strong margin performance.

However, prolonged sluggishness in natural resources market that includes oil and gas, agriculture, mining and construction equipment are proving to be a major concern for the company. Softness in key end-markets has adversely impacted order levels for the past few quarters. Also, restructuring expenses and strengthening of the U.S. dollar are adding to the company’s woes.

PH has an impressive track record of beating earnings estimates in the recent past. In the four trailing quarters, PH has reported a positive average earnings surprise of 16.6%, beating estimates all through. Last quarter, it surpassed estimates by 10.9%.

Parker-Hannifin Corporation Price, Consensus and EPS Surprise

Currently, PH has a Zacks Rank #3 (Hold) but that could change following its second-quarter fiscal 2018 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key details from the announcement below:

Earnings: PH beat on earnings. Adjusted earnings per share came in at $2.15, comfortably beating the Zacks Consensus Estimate of $2.06.

Revenue: Revenues came in at a record $3,371 million, ahead of the Zacks Consensus Estimate of $3,336 million and up 26% year over year.

Key Stats: PH achieved strong adjusted segment operating margins during the reported quarter, which came in at 14.9%, up 20 basis points year over year. The company also raised its guidance for fiscal 2018. Adjusted earnings from continuing operations are now projected to come in the range of $9.65-$10.05 per share (previous projection: $9.10-$9.70).

Stock Price: PH shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back for our full write up on this PH earnings report later!

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